Bank of America on Monday will launch a 3% down payment home loan in partnership with Freddie Mac, but the bank will not retain any risk if the loans default.

The Charlotte, N.C., bank will sell the loans and mortgage servicing rights to Self-Help Federal Credit Union, a Durham, N.C., nonprofit community development lender. The Affordable Loan Solution program is available only to borrowers with incomes of less than 100% of an area's median income.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.